Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the prior quarter and the same quarter last year, while free cash flow margin weakened. Operating cash flow remained relatively stable sequentially but was lower year over year.
- Cash conversion from revenue to free cash flow was dampened by lower revenue and higher capital expenditure relative to the prior quarter. The free cash flow margin narrowed from the prior quarter and more significantly from a year ago.
- Compared to the previous quarter, revenue and operating cash flow were slightly lower, but free cash flow was stable due to a partially offsetting decrease in capital expenditure. Versus the same quarter last year, all metrics were lower, with the largest decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$975.0M
Capital spending and related asset purchases.
FCF margin
19.4%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-12-31 | $6.2B | $2.3B | $930.0M | $1.4B | 22.0% |
| 2023-03-31 | $6.1B | $1.8B | $772.0M | $1.1B | 17.6% |
| 2023-06-30 | $6.0B | $2.0B | $835.0M | $1.2B | 19.8% |
| 2023-09-30 | $5.9B | $2.1B | $975.0M | $1.2B | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Decline
Revenue in the current quarter was lower than both the prior quarter and the same quarter last year, directly pressuring free cash flow generation.
Continued revenue weakness could further constrain free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow was dampened by lower revenue and higher capital expenditure relative to the prior quarter. The free cash flow margin narrowed from the prior quarter and more significantly from a year ago.
Compared to the previous quarter, revenue and operating cash flow were slightly lower, but free cash flow was stable due to a partially offsetting decrease in capital expenditure. Versus the same quarter last year, all metrics were lower, with the largest decline in operating cash flow.
Monitor the impact of labor agreement payments on operating cash flow, as disclosed in the filing.